The #14thIMC took place in Lusaka, Zambia, from 4 to 8 November 2018, and the focus was inclusive insurance for emerging markets.
The event was hosted by the International Microinsurance Network, the Munich Re Foundation and the Microinsurance Technical Advisory Group, with support from Financial Sector Deepening Zambia and Prudential.
This year, the conference reflected on the last 10 years and the current state of microinsurance. This report builds on work published by Microinsurance Network (MiN) members in 2017 on inclusive insurance and the Sustainable Development Goals, and it responds to the need to demonstrate how practice supports theory.
Together with ILO’s Impact Insurance Facility, we have identified eight trends that will shape the future of microinsurance over the decade.
Platforms are emerging across the world to facilitate digital ecosystems and digital marketplaces. In many countries across emerging markets, superplatforms from Silicon Valley and China are responding to the rise in smartphone penetration, data connectivity and digital payments to expand their business operations. These markets vary significantly in terms of their existing platforms, digital infrastructure and regulation, which affects the potential gains that can be made from the entrance of these superplatforms for inclusive insurance. This session compared the conditions for superplatforms and the rise of African digital platforms and what national and regional stakeholders can do to create the right incentives for them to support inclusive insurance market development.
Panellists included:
Richard Leftley (CEO of MicroEnsure, UK), Amolo Ng’weno (East African Director for Bankable Frontier Associates, Kenya) and Adrien Lebegue (Business Development Director of Zhong An, China)
Large levels of informality in sub-Saharan Africa undermine insurers’ attempts to quantify and underwrite the risks of individuals and of small businesses. The availability of new sources of data from social media, IoT, mobile, satellite and aerial imagery allows insurers to effectively reach customers on whom this data was not previously available. It also allows for new products and delivery approaches that can improve value of the product to the end customer. This is not only pushed from data experts, but insurers themselves are reporting an interest in using alternative data. In this session, practitioners provided, for discussion, examples of the application of alternative data in insurance provision.
Panellists included:
Francisco Ceballos (Senior Research Analyst for Picture-Based Insurance [PBI]: Using Picture-Streams from Farmers’ Plots to Assess Crop Damage, International Food Policy Research Institute [IFPRI]), Belhassen Tonat (General Manager: Non-Life, Munich Reinsurance Company of Africa), Mia Thom (Technical Director, Cenfri) and Megan Lawrence (Managing Director of Customer, Strategy and Data Analytics, Hollard South Africa)
MSMEs are more vulnerable than larger enterprises, yet they generally lack adequate risk management strategies. As enterprises grow, the financial losses from an adverse event are likely to exceed what they can cover with informal risk mitigation. Formal insurance products are a promising tool to increase the resilience of MSMEs, spur business investments and, thereby, contribute to enterprise growth. However, uptake of insurance remains low among MSMEs, and MSMEs generally remain a peripheral target market for insurers. Consequently, the guiding question this panel addressed is: How can insurers, insurtech, distributers, governments, donors, etc. act to develop a better insurance market for MSMEs?
Panellists included:
Gregor Sahler (Advisor, GIZ: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Germany), Maroba Maduma (Communications Executive, SA Taxi, South Africa), David C Muchiri (Associate Director: Equity Insurance Agency, Kenya).